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Canceling student loans


shoshin

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10 minutes ago, The Frankish Reich said:

Typically loan forgiveness = imputed income = tax liability. Not sure how this latest plan is going to treat that. $10,000 of extra "income" for someone earning $125,000 in 2022 means about $2200 extra coming back to Uncle Sam. And if you live in NY or CA ....

... so watch this one carefully, and see if they add an IRS special rule treating this forgiveness as a nontaxable event.

(Yes, I hate this plan)

I was focused on the theory that the IRS would be focusing on tax cheats, assuming Alf was referencing the wealthy and uber-wealthy Trumps, Bidens, Gates, Cubans etc who walk among us.  There are likely millions (tens of?) of individuals who have student loan debt, will meet the criteria for forgiveness, and have side hustles like tutoring students, driveway sealing, house painting, cutting hair and so on where cash is king.  Individually it may not always amount to much money, but collectively, the government is missing out on some major coin.  If viewed from the perspective of the greater good, it actually makes sense to pursue that revenue in addition to the much bigger fish beating the system.  

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30 minutes ago, ArdmoreRyno said:

If people really want to help with the student loan issue.... 

 

Drop the interest rates. That's what kills people. 

Precisely what my recommendation has been for years. Such a simple solution I have no idea why it was never brought up. Just keep interest rates at zero while resuming payments. The government still gets the money it loaned out, payments stay affordable without exorbitant interest rates, and balances don’t balloon to unsustainable rates if you lose your job and require a forbearance. 

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If $20K for those with pell grants or $10K for those who did not qualify ALF approves.  Liz Warren and other D politicians wanted $50K ,  Bernie and progressives wanted 100% forgiveness. That makes Biden a ultra conservative 🙂 

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5 minutes ago, BillStime said:

🎯

 

and I paid off my loans three years ago 

 

 

Tax cuts let people keep more of that which they have earned.

 

Student loan forgiveness is completely different.

 

 

AND, of course, student loan forgiveness will heavily favor the rich also.

 

But Billsy does what he is told to do.

 

.

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22 minutes ago, PetermansRedemption said:

Precisely what my recommendation has been for years. Such a simple solution I have no idea why it was never brought up. Just keep interest rates at zero while resuming payments. The government still gets the money it loaned out, payments stay affordable without exorbitant interest rates, and balances don’t balloon to unsustainable rates if you lose your job and require a forbearance. 

 

Certainly interest should be targeted, you can keep it very low or zero for the first year and raise it over time to encourage early principle payoffs.  Penalize with higher rates for delinquent payers.

 

A big part of this should be some required educational seminars that map out the costs should you go into default, and yearly discussion of your loan obligations relative to your future projected salary (based on expected degree).  Default is so hard to get out of because they accelerate the interest that must be paid plus can tack on collection fees. 

 

Someone I know defaulted and had a $3500 collection fee added on to their loan costs, and the fee had to be paid off first before payments were applied to the original loan with interest building up the entire time.  So you get back to making your loan payment, only to watch the loan amount increase each month.

 

But yearly online update to make sure kids and family understand future monthly loan payment vs average salary for your major.

 

The final item is that once you pay off your original loan plus interest amount and any fees, your loan should be forgiven. 

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3 hours ago, The Frankish Reich said:

Typically loan forgiveness = imputed income = tax liability. Not sure how this latest plan is going to treat that. $10,000 of extra "income" for someone earning $125,000 in 2022 means about $2200 extra coming back to Uncle Sam. And if you live in NY or CA ....

... so watch this one carefully, and see if they add an IRS special rule treating this forgiveness as a nontaxable event.

(Yes, I hate this plan)


Democrats included a provision that student loan forgiveness is tax free through 2025 in the last stimulus reconciliation bill.

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25 minutes ago, Bandito said:

The democrats attempting to buy votes once again. College borrower making six figures gets a 10K git. Guy in the trades who borrowed money to buy a truck for his business gets a higher gas bill due to Biden's energy policies. Progressive "equity" means they buy votes, you pay.

 

 

Exactly 

 

All while completely ignoring (deliberately) why the cost of college has sky rocketed in the last 20 years.  

 

Party of the people.  

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11 minutes ago, Big Blitz said:

 

 

Exactly 

 

All while completely ignoring (deliberately) why the cost of college has sky rocketed in the last 20 years.  

 

Party of the people.  

 

What have republicans done to address this problem in the past 20 years ?

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1 minute ago, ALF said:

 

What have republicans done to address this problem in the past 20 years ?

 

Sometimes, letting the free market system lever these issues is much better than a gov or party interfering.

Actually, I would state "always."

 

What the Republicans have not done is propose eliminating debt for people who have agreed to it and signed promissory notes to pay it back.

 

The net of this taxpayer funded forgiveness is to, once again, fail to let the free market impact idiotic college costs, and remove the US University system from having to be accountable for unjustified, and way beyond cpi, wage growth, or any other economic measure, increases.

 

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1 hour ago, aristocrat said:

 

 

5 hours ago, LeviF said:

Again, Republicans not only miss the point but miss an opportunity.

 

Democrats understand that politics simply comes down to what Old Hickory practiced: reward friends, punish enemies.

 

 

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1 hour ago, ALF said:

 

What have republicans done to address this problem in the past 20 years ?

 

 

Not do this because we know their long term goal is 100% forgiveness and then Guarntee Universal Income while the machines do all the work while your hooked up into the State Run Metaverse

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With a booming economy for Trumps first 3 years , (2020 won't count due to covid) did the national debt go down with massive tax cuts to the rich and big business ?  Helping student debt which has excessive interest is right.

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12 minutes ago, ArdmoreRyno said:

State tuition fee wavier and the GI Bill from the Army National Guard paid for my undergraduate degree. It's a good option... and you can get in shape, shoot cool guns.

 

 

 

After HS I joined the USMC. When I got out I went to college on the GI bill. It paid for most including room and board.  The shortfall I made up working in the summer.  

 

So maybe you don't like guns or war or whatever, you can still do this. Enlist in the military into a field like food service or vehicle maintenance or office administration.  Or, join the Coast Guard.  

 

My wife worked and went to college a night to get her degree. Since we both got marketable degrees and didn't have college debt we put some aside in Texas Tomorrow for our daughter's college which we were able to finance without debt since we saved up.

 

There are so many ways to do this without going into debt.  I don't feel sorry for them and really don't see why the 67% of Americans without college degrees and I should have to pay their debts.

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5 minutes ago, ALF said:

With a booming economy for Trumps first 3 years , (2020 won't count due to covid) did the national debt go down with massive tax cuts to the rich and big business ?  Helping student debt which has excessive interest is right.


So are you saying only the rich and big businesses got tax cuts under Trump? 

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13 minutes ago, Chef Jim said:


So are you saying only the rich and big businesses got tax cuts under Trump? 

 

No , my standard deduction doubled . I'm more concerned with the national debt especially due to covid. Now we don't have enough to deal global warming (I know fake news) . How is the decrease in water and farms unable to irrigate  going in California ?

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4 hours ago, ALF said:

 

No , my standard deduction doubled . I'm more concerned with the national debt especially due to covid. Now we don't have enough to deal global warming (I know fake news) . How is the decrease in water and farms unable to irrigate  going in California ?

 

concern with the national debt/deficit is entirely contradictory with this boondoggle. It's nothing more than a redistribution and additional government spending.

 

I haven't seen a legitimate justification for this $300b charade. 
 

this could be a horrible miscalculation by Biden at election time 

Edited by BuffaninSarasota
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1 hour ago, ALF said:

With a booming economy for Trumps first 3 years , (2020 won't count due to covid) did the national debt go down with massive tax cuts to the rich and big business ?  Helping student debt which has excessive interest is right.

This is a new one.  “You don’t help people manage their personal debt with employment options and a booming economy.”.

 

I’m changing your screen name to Alfshton Kucher cuz I think you been Punk’d! 
 

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   It's called welfare, and on a larger scale democrats have completely destroyed inner cities with it.

Not a lot of money always just a little bit, enough to barely sustain, but enough

to keep the stupid lazy and satisfied and voting democrat.

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2 hours ago, ALF said:

 

No , my standard deduction doubled . 

 

I see.  So you agree that the line that Trump ONLY cut taxes for the rich is a lie?  I know that's not what you said but it's pretty safe to say that's what you were insinuating.  

 

What group of people benefited the most from the doubling of the Standard Deduction?  Who did SALT hurt the most? 

 

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This was accelerated by Obama's Admin in 2010.  The government getting into the student loan market told colleges and universities that they could keep increasing tuition and the government would pay it.  When do they get vilified?

Edited by Doc
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